Tran Nguyet Dan

The general secretary of the Viet Nam Advertising Association, Tran Nguyen Dan, said advertising was very important to the development of the economy and to boosting export performance.

"It will enrich the economy with a handsome profit," Dan said.

The fishing industry, for example, earns annual revenue of US$1 billion and at least 60 per cent of this is spent on fishing vessels, and catching and processing the fish, and 10 per cent is spent on advertising.

All advertising companies complained of feeling "harassed" by the advertising regulations of local governments, Dan said.

Tran Nguyet Dan, general secretary of the Vietnam Advertising Association, said some representative offices of foreign advertising firms "employ hundreds of workers who are directly involved in conducting advertising business."

"According to the law, representative offices are not permitted to be directly involved in doing business," he said, adding that setting up representative offices shielded foreign firms from corporate income tax obligations.
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Dan accused foreign firms of paying much lower taxes than they should, based on the high revenues being generated in the industry.

Tran Nguyet Dan, chairman of the Vietnam Advertising Association (VAA), said the release of the advertising decree "is very good news for advertising companies."

He said the regulations written in the decree will settle issues faced by advertising enterprises, especially in Ho Chi Minh City.He recalled Decision 108, recently released by the Ho Chi Minh City People's Committee, which forbade outdoor advertising billboards and advertising on vehicles."Now, with the government decree, the Ho Chi Minh City People's Committee will have to think twice about the decision," he said.

Dan agreed that large outdoor advertising billboards which are offensive to the urban environment and aesthetics should be restricted.

"In Hanoi, for instance, advertising billboards located in the ancient quarter, which would affect the appearance of this important historical area, should be forbidden," he said.

He expected that with the release of the decree, both Hanoi and Ho Chi Minh City People's Committees would have to prioritize making a master plan for outdoor advertising which would avoid such confusing disputes as the current argument concerning outdoor advertising around the T1 Terminal.

According to the decree, a film broadcast on television is permitted to be interrupted no more than twice by advertising, and each instance must not exceed five minutes, and light entertainment programmes no more than four times, each time not exceeding four minutes.

Decree 24 doesn't permit advertising right after the opening music or titles in news and documentary programmes, although it is to be permitted in film, sport and light entertainment programmes.

Furthermore, VAA's general secretary Tran Nguyet Dan said that application procedures for outdoor advertising billboard permits are very complicated and require three different departments to approve the request."Another typical thing in outdoor advertising billboards is constant changes in content and pictures within a short time," Dan explained.

Tran Nguyet Dan, general secretary of the Vietnam Advertising Association, said about 30 foreign advertising companies have representative offices in Vietnam and control about 80 percent of the market.

Advertising revenues have jumped from just $8 million in 1992 to $110 million last year, according to local media reports.Much of the advertising is for products of foreign companies.

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Tran Nguyet Dan, general secretary of the Vietnam Advertising Association, said his group has asked the government to cancel J. Walter Thompson's license because it violates Vietnamese regulations and sets a precedent that could drive local companies out of business.

About 30 foreign advertising companies have representative offices in Vietnam and control about 80 percent of the market, he said.

Ho Chi Minh City officials were not immediately available for comment.

J. Walter Thompson Vietnam said its license amendment is good news for foreign advertisers and clients.